Should Value Investors Buy Deutsche Lufthansa (DLAKY) Stock?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.Deutsche Lufthansa (DLAKY) is a stock many investors are watching right now. DLAKY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.51 right now. For comparison, its industry sports an average P/E of 11.78. Over the past year, DLAKY's Forward P/E has been as high as 7.66 and as low as 4.63, with a median of 5.99.Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. DLAKY has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.61.Investors could also keep in mind SkyWest (SKYW), another Transportation - Airline stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.SkyWest is currently trading with a Forward P/E ratio of 10.54 while its PEG ratio sits at 1.04. Both of the company's metrics compare favorably to its industry's average P/E of 11.78 and average PEG ratio of 0.69.SKYW's Forward P/E has been as high as 14.41 and as low as 8.62, with a median of 11.24. During the same time period, its PEG ratio has been as high as 1.35, as low as 0.98, with a median of 1.16.Furthermore, SkyWest holds a P/B ratio of 1.71 and its industry's price-to-book ratio is 3.71. SKYW's P/B has been as high as 2.02, as low as 1.30, with a median of 1.69 over the past 12 months.These figures are just a handful of the metrics value investors tend to look at, but they help show that Deutsche Lufthansa and SkyWest are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DLAKY and SKYW feels like a great value stock at the moment.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks